How Is Performance Evaluated for an Investment Center

question 53

Multiple Choice

How is performance evaluated for an investment center?

• A)Actual costs incurred compared to budgeted costs.
• B)Actual segment margin compared to budgeted segment margin.
• C)Comparison of actual and budgeted return on investment (ROI)based on segment margin and assets controlled by the segment.
• D)None of the answers are correct.

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Definitions:

Trade and Barter

An economic system where goods or services are exchanged without the use of money.

Equity

The principle of fairness or justice in the way people are treated, often referring to the distribution of resources or opportunities.

Status

The social ranking of a person’s position.

Symbolic Interactionist

A theoretical framework in sociology that emphasizes the role of symbols and language as core elements of all human interaction.